Apple blocks Fortnite app in EU amid escalating feud with Epic Games

Apple blocks Fortnite app in EU: Apple intensified its dispute with Epic Games on Wednesday by preventing the Fortnite video-game maker from launching its own online marketplace on iPhones and iPads in Europe.

The two companies have been embroiled in a legal battle since 2020, when Epic Games accused Apple of charging up to 30 per cent commissions on in-app payments on its iOS devices, violating US antitrust rules.

The latest clash between Epic and Apple coincides with Apple's challenges regarding subdued iPhone demand in China. Apple's stock has fallen 12 per cent this year, lagging behind other major tech companies in the US.

Regulatory and competitive pressures, including efforts by Epic, threaten Apple's profits and control over its ecosystem.

European lawmakers are enforcing the Digital Markets Act (DMA), which compels Apple to allow third-party marketplaces on its devices starting this week.

Brussels antitrust regulators fined Apple 1.84 billion euros ($2 billion) on Monday for impeding competition from music streaming rivals through App Store restrictions, marking Apple's first-ever penalty for breaching EU rules.

Epic sought to leverage the DMA, but Apple blocked its efforts on Wednesday, citing past breaches of contract in their ongoing legal battle.

Apple terminated a new developer account Epic created in Sweden to reintroduce Fortnite and other games to European iPhones via its own game store. Under the new European law, Apple must permit third-party stores on its devices.

Apple stated it has the "sole discretion" to terminate any Epic Games developer account due to their "egregious" breaches of developer agreements.

Epic accused Apple of eliminating one of its biggest potential competitors to the Apple App Store, alleging a violation of the DMA and asserting that Apple hinders true competition on iOS devices.

The European Commission, the EU's executive body, did not immediately comment.

In January, Apple proposed changes to comply with certain DMA conditions, including allowing alternative app stores on iPhones and offering an opt-out from the in-app payments system, with a "core technology fee" of 50 euro cents per user account per year for developers who join the new regime.

(With Reuters Inputs)